These amendments come within the government’s efforts to extend the investment base and enhance the capital market by supporting the supervisory competencies of the Capital Market Authority.
The amendments were enacted to enhance the primary issue market of securities by reducing the minimum nominal share value to ten piaster instead of LE one in order to widen the investors’ base and support more flexibility of transactions. Corporate characters including companies and other institutions are now entitled to issue securities to be traded on the stock market.
A special registry will be created for auditors who are entitled to oversee and review securities companies operating, companies with listed securities on the stock market and public subscription companies. Addition to and deletion from this registry are to be assigned to the Capital Market Authority. This procedure ensures commitment by these companies to corporate governance principles.
According to the new amendments, violations to the capital market law will be punished by a fine up to LE 20 million in some serious crimes, which add risks to the market and give illegal returns of million of pounds.
The concept of the crime of using internal or preferential information was extended to involve not only who breach the confidentiality of information by virtue of his position but also any person who misuses this information by dealing on the stock market to achieve a profit or safeguard himself against a loss.
With the new amendments, the Capital Market Authority has the right to conclude reconciliation on criminal cases at any stage.
With regards to procedures to reorganize the market, Dr. Mohieldin highlighted the fact that Cairo and Alexandria Stock Exchanges have been incorporated into one entity called the Egyptian Stock Exchange. Old-fashioned titles of the listing tables in the stock market have been abolished.
The Minister of Investment reaffirmed that the new amendments will not cancel tax exemptions on capital market transactions.